Western Balkans households invest over €100 million in energy-saving measures
More than 18,000 households in the Western Balkans have invested over €100 million in energy-saving measures such as insulation, heat pumps, new windows and solar panels, in the seven years since the launch of the Western Balkans Green Economy Financing Facility (GEFF) programme in 2017.
Responding to the growing interest in energy efficiency measures, the financing capacity of the Western Balkans GEFF has been increased to €415 million, which will be channelled through local financial institutions.
To celebrate the programme’s success, a regional Greening the Western Balkans conference was held in Sarajevo, Bosnia and Herzegovina, on 29 May. The conference was attended by almost 200 stakeholders from the six Western Balkans countries, including representatives of partner financial institutions (PFIs), regulators and donor communities. Representatives of the European Bank for Reconstruction and Development (EBRD) explained that these measures had reduced CO2 emissions by more than 25,000 tonnes annually and were producing yearly energy savings of 70,000 MWh.
The conference was opened by Srđan Amidžić, Bosnia and Herzegovina’s Minister for Finance and the Treasury. He commended banks in Bosnia and Herzegovina for showing “exemplary social responsibility” in supporting the Facility. In addition, he invited “all banks to participate in this cost effective financing projectand contribute to the financing of green technology, energy efficiency and efforts to tackle climate change, which represents one of the key obligations on Bosnia and Herzegovina as – a candidate country on its way to the European Union.”
Holger Schröder, Head of Unit Western Balkans Regional Programmes, Economic Investment Plan at the Directorate-General for Neighbourhood and Enlargement Negotiations, reminded how the 2022 energy crisis was the catalyst for the EU to launch a €1 billion energy support package for the region, using existing instruments like GEFF. “Two years after the energy crisis, I think we can say that we have come a long way in our efforts to increase energy efficiency, in partnership with the EBRD and local financing institutions. But more is to be done to advance to the ambitious 2030 targets that the Western Balkans have set for themselves and fully achieve the energy transition in the Western Balkans. I believe the Regional Energy Efficiency Programme and the Green Economy Financing Facility will continue to play an important role in that regard.”
Aleksandra Vukosavljević, the EBRD’s Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “The Western Balkans GEFF has helped to advance the region’s transition to a green economy by delivering tangible reductions in the carbon emissions and electricity costs of the residential sector, benefitting individual households and the wider community and enhancing both economic and environmental sustainability.”
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The Western Balkans GEFF is an indirect financing programme under the umbrella of the Regional Energy Efficiency Programme (REEP), part of the Western Balkans Investment Framework (WBIF). The Regional Energy Efficiency Programme in the Western Balkans aims to create a sustainable energy efficiency market in the region. The programme provides a combination of financial instruments for private sector and individual households, technical assistance and policy dialogue support for public institutions to overcome market obstacles and stimulate long-term market growth.
REEP is implemented by the European Bank for Reconstruction and Development (EBRD) and the German Development Bank (KfW) with the support of the EU and other bilateral donors. To date, REEP has provided more than €300m in credit lines and €150m in direct lending for 1,000 SMEs, more than 12,700 households and 290 public buildings. This has contributed to almost 1 million MWh/yr in energy savings. REEP Plus is identified in the European Commission's Economic and Investment Plan for the Western Balkans as one of the flagship projects within the "Renovation Wave" under the investment window "Clean Energy". These projects contribute significantly to the reduction of greenhouse gas emissions, and improve the living standards and health of citizens.
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